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HOW Can we use technology to augment the human workforce? /ENGINEERING THE CITY AS A SERVICE. URBAN-X.COM /05 INDUSTRIAL IOT WITH CONTEXTERE

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Page 1: 05 INDUSTRIAL IOT WITH CONTEXTERE HOW Can ….../05 INDUSTRIAL IOT WITH CONTEXTERE URBAN-X.COM /NOVEMBER 2017. /COHORT 02 REPORT. PAGE 11. COMPETITIVE LANDSCAPE. INDUSTRIAL INTERNET

HOW Can we use technology to augment the human workforce?

/ENGINEERING THE CITY AS A SERVICE. URBAN-X.COM

/05 INDUSTRIAL IOT WITH CONTEXTERE

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The manufacturing sector today employs less than 9% of American workers. This number has dropped dramati-cally from about 50% a few decades ago,1 illustrating the radical and rapid transformations jobs are facing in the country and around the world. The shift the manufactur-ing sector witnessed was particularly affected by the rise of the service- based economy, outsourcing as well as by the disruption brought by new technologies and automa-tion, which have displaced more traditional jobs that were at the basis of western industrial dominance over the past century. This "creative destruction," as Schumpeter noted, brings the need for rapid adaptation, training and specialization as the human worker has had to acquire new technological skills to support the ‘robot’ workers and machines that are a the heart of modern production. The manufacturing sector’s swift transformation has led to multiple issues. Global industries with remote or mobile as-sets are losing money through workforce-related inefficiency.

Existing enterprise software and equipment automation solutions do not effectively engage, leverage or address the field workforce component. Employees are overwhelmed by data yet lack the relevant information to execute, as a result spending over 60% of their time on non-productive activ-ities. Moreover, although there has been great progress in identifying and resolving systemic error with equipment, there is virtually no solution to capture and address system-ic human error. Understanding the common ways in which groups of individuals function correctly and incorrectly can refine automated guidance and avoid equipment redesign.All the analyzing, optimizing and distribution of oper-ational information will not succeed if the people do-ing the work do not have the skills and contextualized information required to execute effectively. It is there-fore key to empower workers through technology, pro-viding them with a tool to support them and make them more effective instead of simply replacing them.2

THE CHALLENGE:Understanding ways TO refine automated guidance and avoid equipment redesign.

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/05 INDUSTRIAL IOT WITH CONTEXTERE /NOVEMBER 2017.URBAN-X.COM

people NEED THE skills and contextualized information required to execute JOBS effectively.

/COHORT 02 REPORT.

$14.2tIIOT could add to the global economy by 20303

88%Of business leaders say IIOT will result in net job creation3

9%share of American workers employed in the manufacturing sector3

60%Of blue collar workers’ time is spent on average on non-productive activities, known as the “first-time right rate”3

4,836The number of workers killed on the job in the United States in 2015, that amounts to 13 workers per day.3

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A CONVERSATION WITHContextere.THE SOLUTION.What inspired you to start Contextere?

Like most startups, Contextere started by addressing a number of questions: why has the technology revolution left behind the people who work the hardest? Why are there millions of job vacancies as millions look for work? Why do 13 workers die every day on the job? These questions drove us to think differently and guided us when devising the three-fold impact of our company. The first is the ability to save lives through the use of AI powered IoT technology in the workplace. The second is to bridge the skilled worker gap through job aids. The third is to reclaim some of the billions of dollars lost in the North American economy due to productivity leakage. Contextere will develop a new augmented 21st century workforce by making every worker skilled.

What is your main mission?

Our mission is to transform the "future of work" by bringing actionable intelligence to the last tactical mile.

How did being part of the URBAN-X ecosystem help you to grow and develop your initial idea/product and deal with the roadblocks you have faced so far?

The URBAN-X ecosystem helped us to grow by providing credibility through brand association and presence in NYC, sharing a network we could mine for new business development opportunities, and finally by allowing us to expand our strategic thinking through exposure to other startups and mentors in related but different fields.

What’s next for Contextere?

The immediate priority for Contextere is establishing pilot implementations in multiple verticals to validate the value proposition and demonstrate the horizontal applicability of the software.

What are the main risks you are facing in the future and how can they be mitigated?

We face two primary risks looking forward: one being technical and the other cultural. The technical risk is that through the hype of AI, many poorly planned and designed implementations will discredit the potential of AI to transform the future of work. We plan to mitigate this risk by

“WE DON’T SEE A FUTURE DRIVEN BY MORE JOB LOSSES DUE TO AUTOMATION BUT MORE JOB OPPORTUNITIES CREATED WITH TECHNOLOGY.”

—Gabe Batstone, Co-Founder of Contextere

establishing a position of leadership to shape the industrial AI narrative and by quickly implementing our own successful pilot projects which will validate the return on investment of our capability. The cultural risk is that the blue collar workforce (and unions) are reticent to adopt new technologies, falsely believing that they will destroy jobs. We will mitigate that risk by actively engaging with workers directly as part of the development process and ensuring we communicate the benefits of autonomy and mastery that our solution provides.

Technology is often cited as being the number one threat to blue collar workers and we’ve seen this argument being used over and over again in the latest U.S. Presidential election - how do you think companies like Contextere might affect this viewpoint?

At Contextere, we don’t see a future driven by more job losses due to automation but more job opportunities created with technology. The assumption that machines can do blue-collar work undervalues the contribution of the field or factory employee who makes minute-to-minute decisions that impact performance, execution and ultimately cost. Iron Man defeats Skynet in the 21st Century.

WHAT. HOW. Contextere is transforming the future of work with an intelligent personal agent that delivers actionable intelligence via simple notifications to the last tactical mile. Its industrial software weaves together the power of AI and industrial IoT to give blue collar workers the right information, at the right time, on the right device.

With Contextere, Fortune 1000 companies and their employees capture value through dramatic decreases in human error, equipment downtime and safety incidents.

TAGS

Industrial IOTAugmented Reality

Manufacturing

HEADQUARTERS Ottawa, Ontario. Founded in 2015.

FOUNDERS

Gabe BatstoneCarl Byers

LINKS

[email protected]

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COMPETITIVE LANDSCAPE.

INDUSTRIAL INTERNET OF THINGS MARKET.4,5

NATIONAL INSTRUMENTS

UPTAKE

PRESENSO

UPSKILL

TULIP INTERFACES

GO FACTORY, INC.

Contextere

Industrial IOT market

By 2021 over 1m IoT devices will be

purchased and installed every hour

The IIoT market is expected to grow

from $113.71b in 2015 to $195.47b by 2022

at CAGR of 7.89%

Target market as defined by

Contextere: 1.96m blue collar workers in the

U.S.

By a broader estimate, there are

19.6m blue-collar jobs in the U.S.

$1.98btarget market as defined by Contextere

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INVESTMENT LANDSCAPE.

UPTAKE UPSKILL TULIP INTERFACES

HQ Chicago, IL Herndon, VA Somerville, MA

WEBSITE uptake.com upskill.io tulip.co

EMPLOYEES 501-1000 11-50 11-50

FIRST FUNDING/ FOUNDING DATE

Founded 2014 Founded 2010 Founded 2014

VC-BACKED yes yes yes

TOTAL FUNDING $135M in 3 Rounds $28.61M+ in 4 Rounds $13M Series A 6/6/17

# INVESTORS 4 9 2

LAST ROUND $50M Series B 4/6/17 $? Series B 4/5/17 Series A

INVESTORS GreatPoint, Lightbank, New Enterprise Associates, Revolution

GE, Salesforce, Boeing, New Enterprise Associates

Pitango Venture Capital, New Enterprise Associates

KEY PLAYERS TO WATCh.

COMPANY PROFILE. Tulip Interfaces was spun out of the MIT Media Lab in 2014 and creates digital manufacturing apps that integrate operator and machine data. Its platform combines research in intelligent hardware sensors, computer vision, assistive user interfaces and applied machine learning, filling the gap between rigid back-end manufacturing IT systems and the dynamic operations taking place on the shop floor.

LESSONS TO BE LEARNED.Tulip raised $13 million in Series A led by NEA. Its highly customizable and multimodal software platform permits workers to receive interactive work instructions, run quality control, audits as well as machine monitoring and training. This new approach to empowering the worker and making him more effi-cient has permitted the company to become a leader in its field.

COMPANY PROFILE. Uptake is an insights platform that seeks to improve workers, services and operations’ productivity, safety and reliability. The company creates products and solutions to achieve measurable results and outcomes to enable insight and predictive analytics across key industries by leveraging a common platform.

LESSONS TO BE LEARNED.In addition to providing solutions that assist com-panies with uptime, productivity and efficiency of workers, Uptake’s predictive analytics software platform also places a large emphasis on safety and cybersecurity, two of the largest issues faced by the IoT industry. Uptake’s large team of engineers, data scientists and designers has permitted it to stretch largely beyond just IIoT and therefore services many different sectors and customers.

Tulip Interfaces. Uptake.

**Crunchbase. 2017. Crunchbase. [ONLINE] Available at: https://www.crunchbase.com [Accessed 14 August 2017].**AngelList. 2017. AngelList - Where the world meets startups. [ONLINE] Available at: https://angel.co. [Accessed 14 August 2017].

FOUNDED 2014

TOTAL FUNDING $13m

EMPLOYEES: 11-50.

FOUNDED 2014

TOTAL FUNDING $135m

EMPLOYEES: 501-1000.

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Most companies applying artificial intelligence to industry are trying to: maximize machine up-time (Presenso), automate manufacturing (General Electric), apply data science to industry (Uptake), manage building systems (Lunera), or serve power companies (Cartasite). Only a handful of companies are adopting worker-centered innovation, leaving a gap in this upcoming market that Contextere is aiming to fill.

WHY Contextere?

In contrast to its competitors and the main players in the IIot sector, Contextere is focused on using augmented reality (AR) to improve the efficiency and safety of human factory workers, an attractive and innovative solution that gives the company a competitive edge and permitted it to raise $1.1 million from Lockheed Martin earlier in July.

MARKET INSIGHT. OPPORTUNITY.

The Industrial Internet of Things (IIoT) sector is quite under-populated, creating many opportunities for new entrants to provide products and services that do not replace the worker but enhance his/her skills and empower him/her to become more productive and efficient. This is a solution that is very popular among workers, employers and society as a whole.

?

FOOD FOR THOUGHT.

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APPENDIX &REFERENCES.

IMAGE CREDITS.

1. AFL-CIO. 2017. Workplace Health and Safety. [ONLINE] Available at: https://aflcio.org/issues/workplace-health-and-safety [Accessed 14 August 2017].

2. Contextere. 2017. Contextere. [ONLINE] Available at: http://Contextere.com [Accessed 14 August 2017].

3. Accenture. 2017. Industrial Internet of Things (IIoT). [ONLINE] Available at: https://www.accenture.com/us-en/insight-industrial-internet-of-things [Accessed 14 August 2017].

4. Markets and Markets. 2016. Industrial IoT Market by Device & Technology (Sensors, RFID, Industrial Robotics, DCS, Condition Monitoring, Smart Meters, AHS, Camera System, Networking Technologies), Software (PLM Systems, MES, SCADA), Vertical, and Geography - Global Forecast to 2022. Available at: http://www.marketsandmarkets.com/PressReleases/industrial-internet-of-things.asp [Accessed 14 August 2017].

5. Dell. The Industrial Internet of Things is Here. Available at: https://www.slideshare.net/Dell/the-industrial-internet-of-things-is-here?ref=https://www.i-scoop.eu/internet-of-things-guide/industrial-internet-things-iiot-saving-costs-innovation/industrial-internet-things-market/ [Accessed 14 August 2017].

Cover image by NeONBRAND, https://neonbrand.com/

Page 5 by Witch Kiki, https://www.instagram.com/rztsky

Page 6 by Jackson Jost, https://unsplash.com/@hannynaibaho